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European equities markets closed higher on Monday, with gains for many of the region’s banking stocks.

The Stoxx 600 closed 1 per cent higher, while Germany’s Dax added 1.1 per cent and France’s Cac 40 climbed 1.3 per cent. London’s FTSE 100 rose 0.9 per cent.

The Euro Stoxx Banks index was up 1.3 per cent, as many of the continent’s biggest names recovered from early declines.

UBS finished 1.3 per cent higher, erasing an earlier drop of more than 14 per cent, as investors weighed its takeover of Credit Suisse, which plunged 55.7 per cent. Its shareholders are on course for a large writedown in value as a result of the UBS deal.

Among other decliners, Barclays fell 2.3 per cent and Société Générale lost 0.8 per cent.

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